Our team of experts have chosen those ISAs they believe to be Best Buys. A selection of those, for which we have arranged links are shown above, whilst products shown with a yellow background are sponsored products.
Eligible deposits with UK institutions are protected by the Financial Services Compensation Scheme. The maximum level of protection will be reducing from £85,000 to £75,000 from 1 January 2016.
Interest you earn from a traditional savings account is subject to income tax. Depending on your income tax banding, up to 45% of any interest you earn goes straight to the taxman!
But, cash ISAs are different…
ISA is short for Individual Savings Account. You may have heard of a NISA too, which simply stands for “new ISA”, reflecting the changes brought in as part of the 2014 Budget.
The general principle is this: unlike normal savings accounts or investments, interest earned from a cash ISA is completely tax-free.
The higher the rate of tax you pay, the more beneficial a cash ISA will be compared with a normal savings account. This table shows the rates you’d need to match a cash ISA with a non-ISA savings account:
Additional Rate Taxpayer (45%)
Cash ISAs can only have a maximum amount paid into them in each tax year, which runs between 6 April and the following 5 April.
In the 2015-16 tax year the ISA allowance is £15,240. You must pay your money in before 5 April 2016 to make the most of your 2015-16 ISA limit, and if you don’t use it, you lose it! Tax advantages will depend on your individual circumstances and may change in the future.
If you also have an investment (or stocks & shares) ISA, you may not be able to put this much into your cash ISA. Read our ISA guide to find out more, including the limits for investment ISAs and how you can split your money between investments and cash.
You can transfer your existing cash ISA without losing the tax-free privileges. The two main reasons you’d do this are to:
Under current rules, this entire process should take no longer than 15 working days.
Don’t bypass this process by withdrawing your cash from your old ISA and putting it into a new one. If you withdraw cash from an ISA it loses its tax-free treatment. Plus, depending on the size of your savings pot, you may not be able to put all of your money into the new cash ISA as it will exceed your annual ISA allowance.
Our ISA Best Buys include those which allow you to transfer to a new ISA provider; just refer to the column "transfer in".
Find all the best cash ISAs with Moneyfacts.co.uk Savings search
Download your free guide to ISAs
Stay in the know with all the latest information, of-the-moment consumer trends, best-in-class products & providers and helpful tools from Moneyfacts.
It’s been a long time coming, but the Help to Buy ISA will be with us next week! But just what is it... More
Just when it seemed that the tide may be starting to turn for the savings market, our latest figures... More
During March inflation stayed put at 0%, unchanged from February and once again the lowest inflation... More
If you’ve got a long-term savings goal, what are you doing to achieve it? Hopefully you’ll be squirr... More
If you’re saving for retirement, just how are you going about it? A pension will probably be the fir... More
Cash ISAs are a special type of savings account that pay interest tax-free. Each tax year you get an... More
Download your FREE Guide to ISA allowances for the 2015-16 tax year. Find out everything you need t... More
Cash ISA transfers can allow you to get a better interest rate and bring your ISAs together in one p... More
Yorkshire Building Society has unleashed a three-year fixed rate ISA onto the market, wresting a pos... More
Chelsea Building Society has launched a three-year fixed rate ISA onto the market, securing it a pos... More
Virgin Money has re-issued its highly competitive range of fixed rate ISAs, enabling them to retain ... More
Leeds Building Society has reissued its competitive fixed rate ISAs, enabling them to remain in thei... More
Coventry Building Society has boosted the rate paid on its easy access ISA by 0.10%, catapulting it ... More
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.